The Characteristics of Macroeconomic Shocks in the CFA Franc Zone
AbstractIn this paper we fit a vector error correction model (VECM) in output and prices to data from 10 countries of the CFA Franc Zone. This model allows for various cross-country interactions in both the short run and the long run. The VECM parameters are used to estimate persistence profiles of different kinds, in order to identify the degree of homogeneity in the way in which the countries respond to macroeconomic shocks. In this way we can shed light on questions about the likely size of the costs incurred from these countries' membership of a monetary union. Copyright 2004, Oxford University Press.
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Bibliographic InfoPaper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper RP2004/21.
Length: 34 pages
Date of creation: 2004
Date of revision:
CFA; VECM; monetary union; Africa;
Other versions of this item:
- David Fielding & Kevin Lee & Kalvinder Shields, 2004. "The Characteristics of Macroeconomic Shocks in the CFA Franc Zone," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 13(4), pages 488-517, December.
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